I just purchased an '05 330ci and literally just came back inside from setting up the Bluetooth. This is what I did:

On the steering wheel, I pushed the R/T button until it went from radio, to CD player, to the phone function. It said on the radio display "activate phone" Or something similar. I then put my phone on bluetooth search function, where the phone searches for a bluetooth signal. The phone "found" the car pretty quickly. From there, I entered the 4 digit pass key for the BMW into the cell phone. This was provided by the dealer on a laminated white card, found in my glove box. From there on in it seemed to work.

You should have a bluetooth pairing button with a talking head on it (it could be the same as the one on the steering wheel, but I haven't tried it). With the ignition off, press the BT pairing button for 1 sec, and holding the button down, turn the accessories on. Keep the pairing button down for another 2-3 sec. When you release, the radio should say "BT pairing" or something similar.

You can then put your phone in BT search mode. When it finds your car, enter the pass key to it up on your phone. Once the pairing is complete, cycle the ignition switch off and on, and they should sync within 30 sec of turning the ignition power back on.

Angie, I recently procured a 2005 325 ci w/ the aforementioned Bluetooth. It's not that hard. Get the separate phone manual from your dealer if it did not come w/ you car. #1 thing to remember, the car only talks to the phone not your SIM card, so transfer all your #'s to you phone before you even get started.